richarddawsonfamilyfeud| Hashimoto Dalio: Rising U.S. debt levels will impact U.S. debt, suggesting diversification of investment destinations

SourceRicharddawsonfamilyfeudWall Street news

Billionaire hedge fund giant Bridgewater Associates)RicharddawsonfamilyfeudRedalio, the founder of Redalio, warned on Thursday that rising levels of U.S. government debt could affect demand for U.S. debt, saying investors should move some of their money to foreign markets.

In an interview with the media, Dalio detailed his wide range of concerns about the United States, including its debt burden, what he called the risk of "civil war" and the possibility that the United States could be involved in new international conflicts. That could deter investors from buying Treasuries, he warned.

He said:

"I am worried about US government bonds because of the high level of US debt, which is further exacerbated by high interest rates."

In addition, Dalio said that if the United States imposed sanctions on more countries, it could also reduce international demand for US debt: "I am also worried that the decline in demand will not be able to meet the supply." in particular, international buyers are worried about the debt situation and possible sanctions in the United States. "

The Congressional Budget Office had previously predicted that the US debt-to-GDP ratio could exceed its all-time high of 106 per cent during World War II by 2030 and would continue to rise; ignoring the US government's deficit could lead to market shocks triggered by former British Prime Minister Lizzie Truss's big tax cuts. Federal Reserve Chairman Colin Powell has previously admitted that the fiscal path of the United States is not sustainable.

At the same time, borrowing costs have risen this year, with the yield on 10-year Treasuries rising from 3.Richarddawsonfamilyfeud.88% rose to 4%.Richarddawsonfamilyfeud.37%, as investors sharply lowered their expectations of lower interest rates.

However, some investors believe that such concerns have been exaggerated. They believe that the new government bonds offered this year have been largely absorbed by retail investors and that the increased auction size has had little impact on returns so far.

Because of U. S. debt and possible further conflicts, Dalio said investors should consider moving some of their money outside the United States. He said that while the United States is good, the risks facing the United States are increasing and investment needs to be diversified.

"countries that make more money than spend money and have good balance sheets are internally orderly and neutral in geopolitical conflicts. It looks very attractive, "Dario added." He listed India, Singapore, Indonesia, Malaysia, Vietnam and some Gulf countries as potential investment destinations. Gold is also a good tool for diversification, he added.

Mr Dalio says one of the risks is that he thinks the likelihood of a "civil war" in the US is increasing, which he thinks is between 35 per cent and 40 per cent.

"We are now on the fringes," he said. But we don't know whether it will enter a more turbulent period. " Dario said that the envisioned civil war is not necessarily a war in which people "pick up guns and start shooting", although it is also possible.

On the contrary, he believes that the "civil war" represents the acceleration of political polarization in American politics over the past few decades. Dario says this "civil war" takes the form of "people moving to states that are more in line with their ideas and not following the decisions of federal authorities controlled by rival political factions".

Mr Dalio also believes that this year's US presidential election will be the most important in his life, which will determine whether the risks he sees get out of control, including the effects of climate change and the wider use of artificial intelligence.

Trump will pursue more right-wing, nationalist, isolationist, protectionist, unregulated policies-and be more aggressive against internal and external. And Biden, even the Democrats without Biden, will be the exact opposite, although they will also play tough in politics. "

Dalio refused to support any candidate, but revealed that he recently attended a concert by Taylor Swift. The World wide Web reported that Dalio had previously posted a selfie of herself at a Swift concert on X and supported her for president in the caption.

The World wide Web quoted the New York Post as saying that Dalio's @ Swift account in the accompanying article said, "Let @ taylorswift13 run for president!" I just saw her at a concert in Singapore and realized that she can bring Americans and people from most countries together better than any other candidate, and bringing people together is the most important thing.

In an interview with the media, he explained: "I am partly joking, but if she runs for president and listens to great advisers, I will consider supporting her."

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